Political instability leads to rise in vehicle leasing

Posted on

Feb 17, 2017

Vehicle rental and personal leasing is enjoying a surge across wide sections of society. This may be due, it has been revealed, to UK residents' reluctance to commit to big purchases in the current political climate. This has led to a natural preference for monthly payment options for vehicles, houses and other services.
The findings are based on a survey of the nation's motorists by Leasing Options, working with the British Leasing and Rental Association (BVRLA). Two-fifths (40%) of respondents stated that the 'unstable political climateî is a deterrent to buying a new car or house. Furthermore, over half of those surveyed declared monthly payment arrangements for between four and seven services or products.
A preference for leasing vehicles over buying was justified in one of two common ways. They were either: the ability to frequently experience a new car (40%), or only being able to afford monthly options (36%). Asked why they generally prefer to pay monthly for their services or product subscriptions, 52% of respondents answered 'to spread out the costî and a remarkable 50% said 'because it makes life easier.î
This has led to the conclusion that, in the uncertainty following the 'Brexitî referendum, many new motorists are attracted to the prospect of fixing vehicle costs. Others are enticed primarily by being able to access up-to-date, safe and low-emission car models more frequently and at less cost than a direct purchase.
Findings in BVRLA's 2015 Car Rental survey showed that rural areas see the highest rates of car ownership _ up to 90%. Meanwhile renters in London, major cities and their suburbs were lowest at 52%.
The discovery points toward behavioural similarities in British and American consumers. Experian Automotive's 2016 State of Automotive Financing report revealed that United States citizens are leasing more vehicles than ever in attempt to control costs.